SMF Version: SMF 1.1.3
LOL, I just felt like putting that in- wait, im asking for help, i need to shutup and quit wasting your time. Anyway, This seems to be a pretty common problem, but I havent found a solution. The visual verification is not showing up. It just says Type the letters shown in the picture. Then when you goto view picture, it says The Image (link) cannot be displayed because it contains errors. You should fix this in your next release.
My Site is: http://www.nitroware.org
I suspect it is a server or configuration issues. What browsers have you used to try to access it? Double check to ensure the theme you're using supports it and the files are uploaded completely in the images directory.
I know everytihing is there, ive uploaded the register.php files multiple times. I know te server is correct, because i was able to get the script narrowed down to just the image generation parts, and it worked. Ive isolated the script, and ran it, no bugs. Its really annoying. I would disable it, but that is a huge security risk.
Does the image verification work in the default theme? Try what KGIII mentioned earlier and see if the theme supports the image verification feature. I have seen themes that don't...you will have to contact the theme's author about those if you want it.